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Momentum Monday - So Far So Good Post Rate Cuts
Howard Lindzon
September 23, 2024
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Welcome back to Momentum Monday!
In today’s episode of Momentum Monday, Ivanhoff and I discuss the following:
Intro and Italy Market Sentiment
Market Reaction to Rate Cuts
Big Tech and S&P Performance
U.S. Dollar and Market Anticipation
Meta’s Breakout & Wearable Tech
Reminder: Riley on my team created the ‘Trends With No Friends’ email which is my go to list every day to track what is working and what is not. You can get it for free here.
In This Episode, We Cover:
Here are Ivanhoff’s thoughts:
The Fed cut interest rates by 50bps, signaling that this time they are trying to be ahead of the curve – act before the economy slows down and unemployment rises. Time will tell if this is the right move. The net result is a new all-time high for the S&P 500. Small caps also gained and finished the week hovering near their 52-week highs. The Nasdaq 100 is still 4% off its all-time high. If it clears 485, it is likely to test 500.
In the meantime, Utilities continue to rise unrelentlessly as if the market expects lower rates for longer, which would make the stock of any dividend-paying or capital-intensive companies more attractive.
Semiconductors were among the weaker performers last week but there are potential winners even in that bucket – AVGO could be in play if it goes above 173, NVDA above 120, AMD above 160, etc.
Traditionally, gold and silver outperform during a rate-cut cycle. After a quick rug pull on Wednesday, they finished the week strong and are looking higher from here – GLD, SLV, GDX, SIL, etc.
The biotech ETF, XBI made another higher low and continues to consolidate for a potential breakout near its 52-week highs.
Overall, the price action is bullish. What would make me bearish? Seeing more high-volume selloffs in the indexes and major sectors. Seeing more sectors ETFs trading below their declining 20-day moving average.
And here are the charts discussed:
PS - Here is the latest ‘Trends With No Friends’ which covers ‘new highs and new lows’ and measures the followers (friends) on Stocktwits versus the prices. Subscribe here.
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